China's Shoe Manufacturing Plant Vietnam Has Cheap Labor And Low Cost.

Faced with many new problems, such as rising labor costs, rising raw materials and export tariff barriers, the countries that fight for other labor and raw material costs have become a way out.

Vietnam is one of the stops, and many Chinese manufacturers have already dug up their first pot of gold there.

Mr. Teng of Wenzhou is a family.

The chairman of the board.

When the financial crisis deepens in 2008, he mainly did two things: personnel adjustment, opening up the market, obtaining more foreign countries' export certification, and then waiting for the next economic cycle quietly.

In 2009, the establishment of China ASEAN Free Trade Area allowed Mr. Teng to see the opportunity.

After some investigation in 2010, he pferred some of his production lines to Vietnam.

The road of "going out" is not smooth. Fortunately, Mr. Teng feels that he is on the right road.

He said: "more and more Chinese businessmen and enterprises have been keenly aware that Vietnam is not only a neighboring country on the southwest border of China, but also an emerging market with huge business opportunities and worthy of positive attack."

Vietnam, which is close to China and has similar development mode to China and is lagging behind China, is developing rapidly. It has become the first stop for many Chinese businessmen to fight overseas.

Statistics show that over the past 5 years, Vietnam's overseas capital investment has increased by an average of 22.16% per year.

Due to the continuous compression of domestic manufacturing profits and the limited export of products, many labor-intensive industries are accelerating the pace of relocation.

Vietnam is becoming an important destination for manufacturing enterprises to migrate.

"Compared to China, the most competitive advantages of Vietnam are manpower costs, factory rent and policy concessions."

This is the first time in 2010.

The most attractive place to visit Mr. Teng.

"Vietnam's labor costs are about 2/3 of China," he said.

At present, the monthly salary of domestic workers has reached 3000 yuan to 4000 yuan, while Vietnam has less than 2000 yuan.

At the same time, the rent of factory buildings is only about 1/3 of the domestic level.

In fact, the most attractive part of Vietnam is its tax preferences. Foreign-funded enterprises are exempt from taxation in the first 3 years in Vietnam, and the tax rate is 5% in the third to 5 years, and the tax rate is around 10%, which is lower than the domestic level.

Asked why he chose Vietnam in the ASEAN countries, Mr. Teng said that Vietnam's proximity to China could easily rely on domestic resources.

At present, the traffic between China and Vietnam already has the omni-directional advantage of "sea, land and air".

Hanoi has opened direct flights with Beijing, Guangzhou, Kunming, Shanghai and Hu Zhiming, with more shifts in Hongkong.

The expressway from Nanjing to Youyi pass and from Hanoi to Lang Son will pass through next year.

From Beihai, Guangxi, you can go directly to Vietnam coast defense by boat.

Now, Chinese people can directly handle 15 days of travel documents on the Sino Vietnamese border with their identity documents, and can enter Vietnam without visa.

Of course, what is more important is the huge market potential behind the rapid growth of Vietnam's economy.

Vietnam began to reform the market economy in 1986, and its economic growth rate reached a record 7.4% in 2003.

Vietnam has a gap with China in terms of high technology, infrastructure and services. It will be precisely the market place for Chinese businessmen.

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In the process of entering Vietnam, small business owners must rely on the influence of local overseas Chinese.

"These overseas Chinese are both protector and referrals.

The application for import and export of goods can be obtained as long as they are introduced and money is paid.

"There are many overseas Chinese resources in Wenzhou," Mr. Teng said.

Of course, Mr. Teng said that in Vietnam, business must face risks such as policy changes.

"Vietnam's current economic environment is similar to that of our country in the 60s and 70s of last century. There are still many uncertainties. In order to avoid risks, many small enterprises set up factories in Vietnam and China at the same time, in Vietnam only do rough raw material processing, and then import home to go deep processing."

Second, Vietnam's commercial laws are not perfect and are often changed.

The lack of law results in the low binding force of contracts, and the "integrity" issue that has been widely discussed in China also exists in Vietnam.

"Be careful when signing a contract, and never pay at once.

In Vietnam, businessmen know that customs is a "gateway".

Vietnam's import and export declarations are often vague in its legal language, and customs officials' interpretation and handling vary from person to person.

Due to the lack of customs declaration experience, the goods were sometimes stuck in the Customs for a month, and the company paid a lot of tuition fees.

Mr. Teng said.

In addition, employees' laziness and their habit of being late are also a headache.

"The factories that are now moving to Vietnam are mainly

Shoes, hardware, furniture, building materials and machinery spare parts are mainly in small businesses.

Mr. Teng said, "small enterprises in Vietnam mainly do simple processing of raw materials, on the one hand, they can be sold directly in the local market, and on the other hand they can also be exported to Europe and the United States, or even to China."

Vietnam has become a pit zone for China's import and export.

China's shoe industry is a typical export industry, and has been repeatedly subjected to anti-dumping investigations and other trade measures.

Teng said that in recent years, because of the constant trade friction, the export business of shoemaking is getting worse and worse.

In Vietnam, factories can export products in addition to "zero tariff" to enter Japan and South Korea and India and other countries, products can also bypass the direct export to Europe and the United States and other places to face the higher trade threshold.

"China ASEAN Free Trade Area" can serve as a "springboard" for domestic enterprises to develop wider international market, and achieve twice the result with half the effort through "policy".

Xu Ningning, Deputy Secretary General of the Chinese Secretariat of the China ASEAN Business Council, said that at present, ASEAN has also established a free trade zone with Japan, South Korea, India, Australia and New Zealand to achieve "zero tariff", but China has established a free trade zone with New Zealand.

Domestic enterprises can make use of the FTA agreement signed by ASEAN and other countries, set up factories in ASEAN, conduct two processing of commodities exported to ASEAN, change their origin attributes, and then export to other countries that sign preferential trade agreements with ASEAN, so as to achieve the "superposition" of many preferential policies.

For example, Japan is an important export market in the world.

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In the import of footwear products, Chinese shoes occupy an absolute leading position with a market share of 70.2%.

In Japan's imports of footwear, China's plastic shoes and textile shoes market share of more than 80%.

"However, unlike the almost complete liberalization of footwear imports in the United States, Japan is importing footwear to protect its own footwear industry.

That is to say, imports are restricted by tariffs. Imported shoes exceeding the quota are subject to high tariffs to control imports. "

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Teng also said that the export of footwear enterprises to Japan, its import tariffs levied nearly 10%.

But with the choice of processing exports from Vietnam, ASEAN has established a free trade zone with Japan and implemented a "zero tariff", whereby Chinese products can cleverly avoid Japan's high tariffs and open the other side's market.

By the same token, other products exported to the EU are often heavily taxed, and the "ASEAN" countries will be able to reduce much of the trouble. Some products exported to India are subject to various restrictions, and Burma will be much more convenient.

At the same time, Vietnam is also a pit point for overseas products to enter China.

Mr. Teng said: "usually the goods in Europe and the United States are shipped to the Hongkong Special Administrative Region of China, then arrive in Vietnam, and finally enter by Guangxi port, thus breaking the fetters of high tariffs imported from China."

According to the new tariff preference agreement, import tariffs on leather raw materials such as leather chemical raw materials, raw skins, semi finished leather, finished leather, raw fur and tannin hide have been reduced to zero, while last year China imposed an average tariff of 1.7% on imports of related products from ASEAN.

Insiders said that leather enterprises should actively understand the market dynamics of ASEAN and other countries, play a good policy card, and some raw materials can be imported from ASEAN countries. This is also a powerful way to reduce costs and enhance the competitiveness of enterprises in the international situation with intensified trade frictions.